Whilst there is no news out, AUD/NZD has snuck under the radar and is up nearly a big figure in the last 1-2 hours. Mind yo we have seen a broad 1.2138-1.2408 range today so a big figure amongst friends is nothing to get too excited about. All up this cross has been on a slippery slide for a month now ever since interest rate expectations flipped. NZ is generally expected to hike in June (if things settle down) whilst Australia is probably on hold until August at least.
One very prescient trader who will remain unnamed asked his bookmaker for a price at the beginning of this month for what price the next RBA move to be down…….he got the very juicy odds of 20/1 ….which was probably “unders” at the time……………4.5% is looking very high in these markets.
